One of the summer’s quietest developments has been New York State’s move to force ticket sellers to offer paper tickets. The lawmakers’ intent was to preserve an open secondary market. In doing so, they gave a thumbs down to any ticketing company’s plans for a closed marketplace for mobile tickets. Although the events in New York have passed with little fanfare, the implications for the ticketing marketplace are huge. Everybody wants a piece of the value captured by the secondary market. Live Nation, for example, is using seat maps and dynamic pricing to capture more value at the initial sale. Ticketmaster, which is part of Live Nation, has increased its use of paperless tickets and wants to be able to control their resale.

At the Huffington Post on Monday, Chris Tsakalakis, president of StubHub and GM of eBay Tickets, made his case for the benefits of a secondary ticketing market. He attacks some myths about ticket resale, such as the notion that scalpers crowd out true fans (“on StubHub, we usually see less than 10 percent and, in rare occasions, up to 30 percent of tickets to an event available for sale”) or that scalping is illegal (“antiquated state laws regulating ticket resale… have been repealed or reformed, making it legal to resell a ticket above face value in 44 states”).

Throughout the post, Tsakalakisfree holds up the virtues of the free market. “In the US, where we have a market based on capitalism and free trade, supply and demand determine price and those who make a profit reselling services or goods are called capitalists, not scalpers. Buying for one price and selling for a higher price is and has always been the American way.” Face value, he later argues, is set to create demand and is not a true reflection of market value. The secondary market, he writes, is an accurate reflection of the market.

Ultimately, he tells us, resale is good for fans. “The ticket resale market creates opportunities for many more fans to attend an event. For many high-demand events, if you're not lucky enough to know someone, hit the initial ticket sale at the right time, or hold season tickets, you are not going to go to the event; unless, of course, you find a ticket on the resale market.”